If you have student loans you have probably heard of what most experts are calling the “Student Loan Bailout”. Much like the mortgage bailout several years ago, millions of borrowers are having payments reduced and some even receiving refunds or forgiveness.
The company behind ITT Technical Institute, the chain of for-profit schools in the United States, will shut down all of its campuses following financial sanctions from the U.S. Department of Education.
ITT Educational Services said in a statement Tuesday it would shutter more than 130 locations in 39 states. The move affects hundreds of thousands of current students and more than 8,000 employees of the ITT Technical Institute, known colloquially as ITT Tech, the company said.
By law, anyone with a severe disability is eligible to have the government discharge their federal student loans. The administration took steps four years ago to make the process easier by letting people who are totally and permanently disabled use their Social Security designation to apply for a discharge, but few took advantage. The Department of Education is now taking it upon itself to identify eligible borrowers and guide them through the steps to discharge their loans.